Comparing Accelerant (ARX) & Its Rivals

Accelerant (NYSE:ARX) is one of 313 public companies in the “Insurance” industry, but how does it compare to its competitors? We will compare Accelerant to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Accelerant and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accelerant	1	7	4	0	2.25
Accelerant Competitors	3240	15337	16152	689	2.40

Accelerant presently has a consensus price target of $18.95, suggesting a potential downside of 4.51%. As a group, “Insurance” companies have a potential upside of 10.28%. Given Accelerant’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Accelerant has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

55.8% of shares of all “Insurance” companies are held by institutional investors. 66.6% of Accelerant shares are held by company insiders. Comparatively, 13.8% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Accelerant and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accelerant	-113.08%	42.79%	3.68%
Accelerant Competitors	10.29%	11.05%	4.11%

Valuation and Earnings

This table compares Accelerant and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Accelerant	$1.14 billion	-$1.35 billion	-2.98
Accelerant Competitors	$15.59 billion	$1.69 billion	35.19

Accelerant’s competitors have higher revenue and earnings than Accelerant. Accelerant is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Accelerant has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Accelerant’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Summary

Accelerant competitors beat Accelerant on 11 of the 13 factors compared.

About Accelerant

Accelerant Holdings, together with its subsidiaries, operates a data-driven risk exchange that connects selected specialty insurance underwriters with risk capital partners. It operates through Exchange Services, MGA Operations, and Underwriting segments. The Exchange Services segment consists of risk exchange, its operating platform that incorporates various technology, data ingestion, and agency operations that serve the needs of its members and risk capital partners. Its Risk capital partners write premiums directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing, and monitoring the business they write. The MGA Operations segment includes the fees earned by members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing services. The Underwriting segment is involved in underwriting insurance policies and assumption of reinsurance policies issued or accepted by consolidated insurance and reinsurance companies. The activities of insurance companies include property and casualty insurance, policy issuance, and reinsurance arrangements. It serves small-to-medium sized commercial clients primarily in the United States, Europe, Canada, Australia, and the United Kingdom. Accelerant Holdings was founded in 2018 and is based in Grand Cayman, Cayman Islands.